Spiders - March S&P Futures: The last two reactions in the S&P’s were 23 and 25 points. On that basis I expect this morning’s break to end in the S&P’s near 1440 and in the Spiders near 144.00. The next step upward will carry the Spiders to147.00 and the S&P’s to 1470.
QQQQ: I expect to find support near 44.40 and then to rally to 46.40 and later into the 47-48 range.
TLT - March Bonds: The lows made on January 26 will hold. TLT is now headed up into the 94-95 range. The bonds are headed for 120. The bonds have reached the short term upside target at 112-16 and are likely to stall for a day or so before heading higher.
March 10 Year Notes: I now believe the notes made their low on January 26 and are now headed for 111. The market has reached its short term upside target at 108-08 and will probably stall for a day or two before heading higher.
Euro-US Dollar: The euro has developed more strength than I expected yesterday but the 132.60 level is strong resistance. From there I expect another downleg to start.
Dollar-Yen: Support is 118.60 and the next upside target is 123.60. I expect to see the yen trade at 130 in 2007.
OIH - USO - April Crude: OIH should soon drop to 129-130. USO should drop to 45. Resistance in April crude is at 62.50 and from there the market should drop to 55.00.
GLD - April Gold: I think that both GLD and April gold are very near important tops. An extended drop will start soon.
March Silver: Silver now has resistance at 1475. Its bear market will resume soon.
Google: Google is headed upward to 564.